Chapter 13 Day 1-4

# Chapter 13 Day 1-4 - Brief Exercise 132 Cash(difference...

This preview shows pages 1–4. Sign up to view the full content.

Brief Exercise 13–2 Cash (difference) .......................................................... 54,600,000 Discount on notes payable (\$60,000,000 x 12% x 9 / 12 )... 5,400,000 Notes payable (face amount) .................................... 60,000,000 Interest expense (\$60,000,000 x 12% x 3 / 12 ) ................... 1,800,000 Discount on notes payable .................................... 1,800,000

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Brief Exercise 13–4 Cash (difference) .......................................................... 11,190,000 Discount on notes payable (\$12,000,000 x 9% x 9 / 12 ) ..... 810,000 Notes payable (face amount) .................................... 12,000,000 Interest expense ........................................................ 810,000 Discount on notes payable ........................................... 810,000 Notes payable (face amount) ........................................ 12,000,000 Cash ....................................................................... 12,000,000 Brief Exercise 13–7 In 2016 Lizzie would recognize \$11,500 of revenue (\$4,000 + 3,000 + 2,500 + 2,000). In 2017 Lizzie would recognize the remainder of \$6,500 (\$18,000 – 11,500), either because gift cards were redeemed (the \$1,000 in January and the \$500 in February) or because they are viewed as expired. Brief Exercise 13–10 Under U.S. GAAP, the debt would be classified as long-term for both completion dates, as what is key is that the refinancing be completed before the financial statements are issued.
Exercise 13–1 Requirement 1 Cash ................................................................ 16,000,000 Notes payable .............................................. 16,000,000 Requirement 2 Interest expense (\$16,000,000 x 12% x 2 / 12 ) ........ 320,000 Interest payable ........................................... 320,000 Requirement 3 Interest expense (\$16,000,000 x 12% x 7 / 12 ) ........ 1,120,000 Interest payable (from adjusting entry) ................ 320,000

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern